As the couple were inspecting some prize-winning alpaca fleece in the Fresh Food Dome, Kate commented that perhaps William could use some to make himself a toupee.
“The princess said (the Duke) should put some on his head,” said Lyn Cregan, 67, from Glen Innes.
“She pointed at him and said ‘You need it more than me.’ He laughed.”
The royal couple also took time to get up close and person with Fred the ram, who had been taught to bow for the occasion.
Fred’s owner, Jim Murray, from Wellington, said the couple were “absolutely lovely” and very interested in the wool industry.
“They fed Fred a piece of apple and were very impressed with his size and stature and how soft his muzzle was,” he said.
Mr Murray met Prince Charles in Tasmania last year. Wool from Fred’s Merino fleece went into a suit that was presented to the Duke on the occasion of his wedding.
The Duke, who in March completed a 10-week course in agricultural management at the University of Cambridge, spoke to sheep shearers as they tackled two of 250 sheep that are sheared over the 14-day fair.